Half Year 2025 Famous Brands Ltd Earnings Call Transcript
Key Points
- Famous Brands Ltd (FMBRY) achieved a level one, triple B contributor status, up from level two, indicating improved performance and contribution to South African society.
- The company reported a 9.5% increase in headline earnings per share, driven by a reduction in finance costs and debt capital repayment.
- Famous Brands Ltd (FMBRY) is on track to open 89 new restaurants in the second half of the year, indicating strong growth potential.
- The company has seen positive momentum in September and October trading, suggesting a recovery from the challenging first half.
- Famous Brands Ltd (FMBRY) has a healthy balance sheet with sufficient liquidity and flexibility to fund business operations, supported by undrawn credit facilities.
- The company faced a challenging trading environment in the first half of the year, particularly in Q1, due to pre-election uncertainty and severe load shedding.
- Signature Brands underperformed, with closures in South Africa and cost pressures impacting performance.
- The retail revenue was below expectations due to a significant decline in demand for potato chips, affected by increased competition and imports.
- Manufacturing volumes were down, while logistics volumes increased, indicating a disconnect in the supply chain.
- The coffee sector is considered over-traded, similar to the craft beer market a decade ago, posing challenges for players in this segment.
Good morning. Welcome, on behalf of myself, Darren and Neli to our FY25 interim financial results presentation. We are hosting them from our Midrand offices.
We really value the interest that you show to register for this live audio webcast, thank you. And a special welcome to board members of Famous Brands who are on the call and to the Famous Brands family from our various offices across continent. And really, we've all worked hard to produce these interim results in a very tough trading environment, particularly the first quarter. So glad that you can share in them with us and also nice to see some franchise partners registered on the core, which is also really good. And we're really privileged, Neli and I to be presenting these results on behalf of everybody at Famous Brands.
They are the mixed set of results, as we certainly felt the bumps in the road, particularly in Q1 in the [SA] environment, which was definitely a follow on from the Q4 of FY24. The last certainly last couple of months were rather challenging, but the
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